Acentra Health, the McLean, Virginia-based government health solutions company, has acquired FEI Systems, a Columbia, Maryland-based Medicaid and human services technology company. Financial terms weren’t disclosed. It’s a genuinely regional combination: two government health tech companies headquartered less than an hour apart, both built around helping state and federal agencies run Medicaid and related programs.
What FEI Systems Brings to the Table
FEI Systems, founded in 1999, has spent 27 years helping government agencies modernize Medicaid and human services technology, building a cloud-based, configurable platform that supports complex long-term services and supports (LTSS), home- and community-based services (HCBS), and behavioral health programs. The company employs more than 500 people and will initially keep operating under its own name while integration with Acentra plays out over the coming months. Acentra CEO Todd Stottlemyer framed the acquisition around the specific expertise FEI adds: “Government healthcare agencies are under increasing pressure to modernize complex programs while improving the experience for providers, case managers, and the individuals they serve. FEI Systems brings exceptional technology, talented people, and deep Medicaid expertise that accelerates our ability to meet those needs. Both organizations are committed to improving lives through technology and clinical excellence. We are building a stronger engine for innovation that will enable our clients to solve tomorrow’s challenges.” FEI Systems CEO Craig Steffen described the deal as a natural extension of his company’s mission: “Our mission has always been to help government agencies deliver more coordinated, person-centered care through innovative technology. Joining Acentra Health allows us to advance that mission by combining our strengths with an organization that shares our values, our commitment to innovation, and our passion for improving health outcomes. Together, we will deliver even greater capabilities and long-term value for our clients, providers, and the individuals they serve.”
A Broader Portfolio for Government Healthcare Agencies
Combined, the two companies now span eligibility, assessments, provider management, claims and encounter processing, care coordination, behavioral health, case management, LTSS, and HCBS solutions, essentially the full technology stack a state Medicaid agency needs to run these programs. That breadth matters because government healthcare agencies increasingly want fewer vendors covering more of their workflow, rather than stitching together point solutions from a dozen different contractors. Folding FEI’s Medicaid-specific technology directly into Acentra’s existing clinical and technology services gives Acentra a more complete offering to bring into state contract renewals and new business.
Two Regional Players, One Bigger Government Health Tech Company
Acentra Health itself is a relatively young brand built on older bones: it formed in 2023 when CNSI and Kepro merged and rebranded, backed by the private equity firm Carlyle. Even before this acquisition, Acentra was already substantial, working with 45 state Medicaid agencies and 15 federal clients, and touching more than 140 million beneficiaries nationwide. Adding FEI Systems brings the combined organization to roughly 4,000 employees worldwide, including more than 1,100 credentialed clinicians across dozens of specialties. For the BioHealth Capital Region and Northern Virginia’s broader health tech corridor, this is a reminder that the area isn’t just a hub for pharma and biotech, it’s also become a real center of gravity for the health IT companies that keep Medicaid and other government health programs running behind the scenes.
